ROLCON ENGINEERING CO. LTD.,
Report on the Financial Statements
We have audited the accompanying nancial statements of ROLCON ENGINEERING COMPANYLIMITED, which comprise the Balance Sheet as at March 31, 2014, the Statementof Profit and Loss and Cash Flow Statement for the year then ended and a summary of signicant accounting policies and other explanatory information.
Management's Responsibility for the Financial
Management is responsible for the preparation of these nancial statements that give atrue and fair view of the nancial position, nancial performance and cash ows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956 ("the Act") read with General Circular15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section133 of the Companies Act, 2013. This responsibility includes the design, implementationand maintenance of internal control relevant to the preparation and presentation of thenancial statements that give a true and fair view and are free from material misstatement,whether due to fraud or error.
Our responsibility is to express an opinion on these nancial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the nancial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the nancial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the nancialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe nancial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement, as well as evaluating the overall presentation of the nancial statements.
We believe that the audit evidence we have obtained is suf cient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us, the nancial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as atMarch 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year endedon that date; and
(c) in the case of the Cash Flow Statement, of the cash ows for the year ended on thatdate.
Report on Other Legal and Regulatory
1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order"),as amended, issued by the Central Government of India in terms of sub-section (4A)ofsection 227 of the Act, we give in the Annexure a statement on the matters speci ed inparagraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit; b. in our opinion properbooks of account as required by law have been kept by the Company so far as appears fromour examination of those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt withby this Report are in agreement with the books of account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash FlowStatement comply with the Accounting Standards referred to in subsection(3C) of section211 of the Companies Act, 1956 read with General Circular 15/2013 dated 13 September 2013of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e. on the basis of written representations received from the directors as on March31, 2014, and taken on record by the Board of Directors, none of the directors isdisquali ed as on March 31, 2014, from being appointed as a director in terms ofclause (g) of sub-section (1) of section 274 of the Companies Act, 1956.
For, THACKER BUTALA DESAI.
Firm Regi. No. 110864W
Membership No. 030911
Date : 5 MAY-2014
ANNEXURE TO THE INDEPENDENT
(Referred to in paragraph 1 under ' Report on Other Legal and RegulatoryRequirements' section of our report of even date)
(i ) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixed Assets.
(b) Fixed Assets have been physically veri ed by the management at reasonableintervals, no material discrepancies were noticed on such veri cation
(c) No substantial part of Fixed Assets has been disposed off during the year;
(ii) (a) Physical veri cation of inventory has been conducted at reasonable intervalsby the management;
(b) The procedures of physical veri cation of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) According to information and explanation given to us, the discrepancies noticed onveri cation between the physical stock and book were not material.
(iii) (a) The Company has not granted any Loans, secured or unsecured to companies, rmsor other parties covered in the register maintained under section 301 of the CompaniesAct,1956. Accordingly, the provisions of clause 4 (iii) (b) to (d) of the Order are notapplicable.
(e) The Company has not taken any loans, secured or unsecured from companies, rms orother parties covered in the register maintained under section 301 of the Companies Act,1956. Accordingly, the provision of clauses 4 (iii) (f) and 4(iii) (g) of the Order arenot applicable.
(iv) In our opinion and according to the information and explanations given to us,there is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of stores, raw materials, includingcomponents, plant and machinery, equipment and other assets and with regard to the salesof goods & services. We have not noticed any continuing failure to correct majorweakness in internal control system.
(v) (a) In our opinion and according to the information and explanations given to us,the Company has entered the particulars of contracts or arrangements that need to beentered in to a register in pursuance of section 301 of the Act.
(b) According to the information and explanations given to us, each of thesetransactions made in pursuance of such contracts or arrangements have been made at pricewhich are reasonable having regard to the prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an Internal Audit System commensurate with thesize and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Governmentunder section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima faciethe prescribed cost records have been maintained. We have, however, not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.
(ix) (a) According to the records of the Company, the Company is regular in-depositingundisputed statutory dues including Provident Funds, Investor Education and ProtectionFund, Income Tax, Central Sales/Vat Tax, Wealth Tax, Service Tax, Custom Duty, ExciseDuty, Cess and any other statutory dues with the appropriate authorities. We are informedthat the Employees State Insurance Scheme is not applicable to the Company. No undisputedamount payable in respect thereof were outstanding at year end for a period of more than 6months from the date they become payable.
(b) According to the books of accounts and records as produced and examined by us inaccordance with the generally accepted auditing practices in India, there are no dues ofIncome Tax, CST, VAT, Wealth Tax, Custom Duty and Cess which have not been deposited onaccount of any dispute.
(x) The Company has no accumulated losses at the end of the nancial year and it has notincurred cash losses in the current and immediately preceding nancial year.
(xi) According to our audit procedure and on the basis of information and explanationsgiven by the management, the Company has not defaulted in repayment of dues to anyFinancial Institution or Bank. The Company has not issued any Debenture.
(xii) The Company has not granted any loans against security by way of pledge ofshares, debentures and other securities, so the question of de ciency does not arise.
(xiii) As the Company is a manufacturing company, the provisions of any special statuteapplicable to chit fund are not applicable. Accordingly, the provision of subclause 4C(xiii) of the Order is not applicable.
(xiv) The Company is not dealing in or trading in shares, securities, debentures andother investments. Accordingly, the provision of clause 4 (xiv) of the Order is notapplicable
(xv) The Company has not given any guarantee for loans taken by others from banks orFinancial Institutions. Therefore, the question of terms and conditions whereof areprejudicial to the interest of the Company does not arise.
(xvi) In our opinion and according to the information and explanations given to us, theterm loans obtained during the year under review have been applied for the purpose forwhich they were obtained.
(xvii) In our opinion and according to the information and explanations given to us,and on an overall examination of the Balance Sheet of the Company, we report that no fundsraised on short-term basis have been used for long term investment.
(xviii) The Company has not made any preferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Companies Act, 1956during the year under review.
(xix) The Company has not issued any debentures during the year. Therefore, thequestion of creation of securities or charges in respect thereof does not arise.
(xx) The Company has not made any public issue during the year. Therefore, the questionof disclosure and veri cation of end use of money so raised does not arise.
(xxi) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the nancial statement and as per information and explanations given bythe management, no material frauds on or by the Company were noticed or reported duringthe year under review.
For, THACKER BUTALA DESAI.
Firm Regi. No. 110864W
Membership No. 030911
Date :5 MAY-2014